The symptom:
SIOCSIFFADDR: No such device eth0: ERROR while getting interface flags: No such device Bind socket to interface: No such device Failed to bring eth0
First check all your network interfaces:
ifconfig -aYou should see that the eth1 interface is actually present (but not connected).
Note the MAC address of eth1. Edit /etc/udev/rules.d/70-persistent-net.rules and change eth1 -> eth0 (the MAC address should be the correct one). You can delete the old line for eth0.
Restart the VM and the network should be OK.